EFTA01371291

Risk Management Strategies Considerations Mitigants Healthcare Reform and Changes in Government Reimbursement Tenant Concentration Competition Higher Interest Rates Tenant Solvency American Medical Properties — The Affordable Care Act's increased healthcare coverage yields additional patient volume and revenue for hospitals — Any changes to the Affordable Care Act will likely have a limited impact given that they may be offset by changes in federal Medicaid and other healthcare subsidies — American Medical Properties has a diversified pipeline across operators and geographic markets — The majority of AMP's healthcare REIT competitors are focused on other healthcare real estate asset classes (senior housing/SNFs/MOBs) and hospitals are not a focus area. As a result, the hospital real estate asset class presents one of the most compelling sale/lease back opportunities. — Interest rates are projected to increase gradually and only modestly in the near term — AMP has the flexibility to utilize alternative capital sources — AMP plans to continuously monitor the performance of its tenants on a variety of metrics including: — admission levels and surgery/procedure volumes by type — trends in revenue and patient mix — operating margins — ratio of tenant's operating margins to total fixed costs — the effect of evolving healthcare regulations on tenant's profitability and liquidity — These factors will help AMP identify any potential issues with any of its tenant's capability to pay rent allowing AMP to take remedial actions to mitigate this risk as CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0064594 CONFIDENTIAL SDNY_GM_00210778 EFTA01371291